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Is It Time to Add Kimco Realty (KIM) to Your Portfolio?

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We have updated our research report on Kimco Realty CorporationKIM on Nov 13, 2015.

Earlier this month, Kimco Realty reported third-quarter 2015 adjusted funds from operations ("FFO") per share of 36 cents, a penny short of the Zacks Consensus Estimate and flat year over year.

Nevertheless, the company raised its 2015 guidance and announced a 6.3% hike in its quarterly dividend. Kimco is also getting rid of the non-core assets in its portfolio and joint-venture stakes in a bid to achieve a more streamlined business model.

In the reported quarter, the company completed the sale of its interests in 19 Canadian shopping centers to RioCan Real Estate Investment Trust for C$477.3 million. Another 26 Canadian properties are under contract for sale or have an accepted offer with Kimco share aggregating around C$773.9 million.

Importantly, this retail real estate investment trust (REIT) has acquired 199 properties for a gross amount of $5.3 billion, and sold 267 properties aggregating $2.5 billion, since the company started its portfolio transformation in Sep 2010.

Going forward, solid demand for Kimco's properties, its portfolio transformation initiatives and easy access to capital bode well. Nevertheless, near-term earnings dilution led by high disposition activity and an anticipated rise in interest rates in the coming months remain concerns.

Echoing similar sentiments, over the past 7 days, the Zacks Consensus Estimate for the stock has moved up a penny to $1.52 for 2015 and remained unchanged at $1.54 for 2016. Currently, Kimco carries a Zacks Rank #3 (Hold).

Key Picks from the Sector

Investors interested in the retail REIT industry may consider stocks like Rouse Properties, Inc. RSE , Simon Property Group Inc. SPG and Taubman Centers, Inc. TCO . All three stocks have a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

SIMON PROPERTY (SPG): Free Stock Analysis Report

KIMCO REALTY CO (KIM): Free Stock Analysis Report

TAUBMAN CENTERS (TCO): Free Stock Analysis Report

ROUSE PROPERTS (RSE): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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